Auditor monitoring and restatement dark period

2019 ◽  
Vol 28 (1) ◽  
pp. 73-95 ◽  
Author(s):  
Nourhene BenYoussef ◽  
Mohamed Drira
Keyword(s):  
Corporate Governance ◽  
Negative Binomial ◽  
Dark Period ◽  
Academic Research ◽  
Negative Binomial Regression ◽  
Publicly Traded ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
Binomial Regression ◽  
The Impact

Purpose Prior research has examined the impact of corporate governance mechanisms, including external auditing, on accounting restatements likelihood. However, little is known about auditor’s monitoring role in restatement disclosure practices. The purpose of this study is to address this gap by investigating the impact of auditor’s oversight on the timeliness of accounting restatement disclosures as measured by the length of the restatement dark period. Design/methodology/approach The study examines panel data from a sample of restating publicly traded US firms. Negative binomial regression is used to analyze the data because the dependent variable is a count variable and is over-dispersed. Findings The main study’s results indicate that longer auditor tenure and non-audit services provision improve restatement disclosure timeliness. Conversely, companies whose auditors exerted abnormally high levels of audit effort have longer restatement dark periods. Originality/value This study is the first archival research that focuses on auditor’s monitoring role and its impact on the timeliness of restatement disclosures. By doing so, this study contributes to the auditing academic research, professional practice and regulation by providing empirical evidence on an exasperating issue for all participants in the financial markets. In addition, it provides a better understanding of auditor’s monitoring role in the accounting restatement process and offers insights to policymakers, practitioners and investors interested in corporate financial transparency and corporate governance.

How marketer-generated content characteristics affect consumer engagement? Empirical evidence from China's WeChat food marketing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Si Tan ◽  
Weiping Chen
Keyword(s):  
Body Text ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Food Marketing ◽  
Consumer Engagement ◽  
Content Type ◽  
Positive Effects ◽  
Binomial Regression ◽  
Media Research ◽  
Text Content

Purpose Leveraging marketer-generated content (MGC) can increase firms' success. However, few studies uncover the effects of MGC-related attributes on consumer engagement in the context of food marketing. This paper aims to explore the influence of MGC characteristics (valence, content types, vividness and interactivity) on consumer engagement.Design/methodology/approachThis study uses WeChat official account data of seven food companies from China and conducts negative binomial regression models.FindingsThe findings indicate that different MGC-related characteristics have separate impacts on consumer WeChat engagement. Title valence, transactional title content and title with punctuation vividness negatively affect consumers' consuming engagement. Knowledgeable or entertaining title content and title with interactivity both positively affect consumers' consuming engagement. Moreover, transactional body text content negatively influences consumers' contributing engagement, whereas entertaining body text content shows positive effects. Vivid and interactive MGC body text attributes enhance consumers' contributing engagement behavior.Originality/value This study contributes to social media research in food marketplaces and sheds light on the effect of different WeChat MGC characteristics on separate consumer engagement.

Corporate governance and risk in cross-listed and Canadian only companies

2019 ◽  
Vol 57 (10) ◽  
pp. 2740-2757 ◽  
Author(s):  
Atreya Chakraborty ◽  
Lucia Gao ◽  
Shahbaz Sheikh
Keyword(s):  
Corporate Governance ◽  
Differential Effect ◽  
Composite Index ◽  
Governance Mechanism ◽  
Firm Risk ◽  
Governance Mechanisms ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
The Impact

Purpose The purpose of this paper is to investigate if there is a differential effect of corporate governance mechanisms on firm risk in Canadian companies cross-listed on US markets and Canadian companies not cross-listed (Canadian only companies). Design/methodology/approach Using a sample comprised of all Canadian companies included in the S&P/TSX Composite Index for the period 2009–2014, this study applies OLS and fixed effect regressions to investigate the effect of corporate governance mechanisms on firm risk. Interaction variables between governance mechanisms and the cross-listing status are used to examine if this effect is different for cross-listed firms. Findings Results indicate that the effect of board characteristics such as size, independence and proportion of female directors remains the same in both cross-listed and not cross-listed firms. CEO duality and insider equity ownership impact firm risk only in cross-listed companies, while institutional shareholdings, environmental, social and governance disclosure and family control affect firm risk in Canadian only firms. Overall, the empirical results indicate that some governance mechanisms impact firm risk only in firms that cross-list, while others are well-suited for Canadian only firms. Practical implications This study suggests that some of the differences between Canadian companies that cross-list and the Canadian companies that do not cross-list in US stock markets may change the impact of governance mechanisms on firm risk. Therefore, these findings have important implications for the design of governance mechanisms in Canadian firms. Since some of these differences are common to other economies, the conclusions can be extended to companies in other countries with similar governance structures. Originality/value Although previous studies have investigated the effect of governance mechanism on firm risk, this is the first paper that studies the differential effect for companies that cross-list in US markets. Specifically, differences in the ownership structure, firm control and in the regulatory and institutional environment, may explain this differential effect. Unlike most of the previous studies that focus on the effect of individual governance mechanisms, this study uses several mechanisms and their interactions at the same time.

scholarly journals Assessing the Impact of Nightlight Gradients on Street Robbery and Burglary in Cincinnati of Ohio State, USA

2019 ◽  
Vol 11 (17) ◽  
pp. 1958 ◽  
Author(s):  
Hanlin Zhou ◽  
Lin Liu ◽  
Minxuan Lan ◽  
Bo Yang ◽  
Zengli Wang
Keyword(s):  
Negative Binomial ◽  
Infrared Imaging ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Binomial Regression ◽  
Information Criterion ◽  
Binomial Regression ◽  
Street Robbery ◽  
The Impact

Previous research has recognized the importance of edges to crime. Various scholars have explored how one specific type of edges such as physical edges or social edges affect crime, but rarely investigated the importance of the composite edge effect. To address this gap, this study introduces nightlight data from the Visible Infrared Imaging Radiometer Suite sensor on the Suomi National Polar-orbiting Partnership Satellite (NPP-VIIRS) to measure composite edges. This study defines edges as nightlight gradients—the maximum change of nightlight from a pixel to its neighbors. Using nightlight gradients and other control variables at the tract level, this study applies negative binomial regression models to investigate the effects of edges on the street robbery rate and the burglary rate in Cincinnati. The Akaike Information Criterion (AIC) of models show that nightlight gradients improve the fitness of models of street robbery and burglary. Also, nightlight gradients make a positive impact on the street robbery rate whilst a negative impact on the burglary rate, both of which are statistically significant under the alpha level of 0.05. The different impacts on these two types of crimes may be explained by the nature of crimes and the in-situ characteristics, including nightlight.

Corporate governance and underpricing of small and medium enterprises IPOs in India

2020 ◽  
Vol 20 (3) ◽  
pp. 503-525
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Curvilinear Relationship ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Explanatory Variables ◽  
Corporate Governance Mechanisms ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India. Design/methodology/approach Most of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing. Findings The results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model. Practical implications The findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards. Originality/value The present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

The impact of external and internal corporate governance mechanisms on agency costs

2019 ◽  
Vol 19 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Jonas Schäuble
Keyword(s):  
Corporate Governance ◽  
Agency Costs ◽  
Governance Mechanisms ◽  
Content Type ◽  
Frontier Analysis ◽  
Audit Firm ◽  
Audit Market ◽  
Corporate Governance Mechanisms ◽  
The Us ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of external and internal corporate governance mechanisms on agency costs. Design/methodology/approach The author uses data from German firms that were listed in the regulated market of the Frankfurt Stock exchange during 2006-2011. Agency costs were measured using stochastic frontier analysis, a relatively new approach to estimate agency costs. The regression analysis is applied to test the model. Findings The results indicate that an industry specialized audit firm, the presence of a large audit firm, abnormal audit fees, management ownership and variable management compensation are significantly negatively associated with the level of a firms’ agency costs. In contrast, this seems not to be true for the existence of an audit committee for which the results of the paper document a non-significant association. Originality/value The paper contributes to the existing literature in several ways. First, the research design is to the best of the authors’ knowledge the first that investigates the influence of different corporate governance mechanisms on the level of agency costs. Second, previous studies are mainly focused on the US audit market. This focus on the US audit market leaves uncertainties regarding the direction and magnitude of the empirical relationship in the European and German environmental context. Finally, the paper provides initial empirical evidence for a sample of German IFRS listed companies (IFRS – International Financial Reporting Standards).

scholarly journals Customer reactions to a webshop’s service quality

Empirica ◽  
2019 ◽  
Vol 47 (4) ◽  
pp. 699-731
Author(s):  
Franz Hackl ◽  
Rudolf Winter-Ebmer
Keyword(s):  
Service Quality ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Data Set ◽  
Product Categories ◽  
Service Characteristics ◽  
Binomial Regression ◽  
Quality Aspects ◽  
Quality Dimensions ◽  
The Impact

Abstract E-commerce has become an integral part of the world’s economy. In this study we investigate the impact of service quality in e-tailing on site visits and consumer demand. Such an analysis is important given the almost Bertrand-like competitive structure. Our analysis is based on a large representative data set obtained from a price comparison site covering essentially the complete Austrian e-tailing market. Customer evaluations for a broad range of 15 different service characteristics are condensed using factor analysis. Negative binomial regression analysis is used to measure the impact of service quality dimensions on referral requests to online shops for different product categories. Our results show that the most important service quality aspects are those related to the ordering process and the firm’s website performance.

Mandated Representation: Exploring the Consequences of Gender Quota Design on Parliamentary Activity

2020 ◽  
Author(s):  
Eva-Maria Euchner ◽  
Elena Frech
Keyword(s):  
Negative Binomial ◽  
Gender Diversity ◽  
Negative Binomial Regression ◽  
Gender Quotas ◽  
Binomial Regression ◽  
Interdisciplinary Framework ◽  
Research Gap ◽  
And Gender ◽  
Gender Quota ◽  
The Impact

Abstract Although the scholarship on legislative behaviour widely agrees that electoral rules determine parliamentary activities, surprisingly little is known on the impact of gender quotas. We contribute to this research gap by developing an innovative interdisciplinary framework and by exploring it based on a unique dataset on varying gender quota designs throughout EU countries and parties running for the 7th term of the European Parliament (2009–2014). Based on the scholarship on gender diversity in management teams and the research on gendered processes in political parties, we argue that especially mandated gender quotas stimulate processes of social categorisation, intergroup biasing and competition due to a normative mis-fit between conceptions of gender equality and gender quotas, which in turn influences coordination and communication and hence, parliamentary activity more generally. Combining negative-binomial regression models and expert interviews, we indeed find that mandated gender quotas promote ‘individual’ parliamentary activities (e.g. speeches) and tend to impede ‘collaborative’ parliamentary activities (e.g. reports).

scholarly journals Does Car-Sharing Reduce Car-Use? An Impact Evaluation of Car-Sharing in Flanders, Belgium

2020 ◽  
Vol 12 (19) ◽  
pp. 8155
Author(s):  
Donald A. Chapman ◽  
Johan Eyckmans ◽  
Karel Van Acker
Keyword(s):  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Experimental Methods ◽  
Car Ownership ◽  
Car Sharing ◽  
Car Use ◽  
Binomial Regression ◽  
Quasi Experimental ◽  
Private Car ◽  
The Impact

Private car-use is a major contributor of greenhouse gases. Car-sharing is often hypothesised as a potential solution to reduce car-ownership, which can lead to car-sharing users reducing their car-use. However, there is a risk that car-sharing may also increase car-use amongst some users. Existing studies on the impacts of car-sharing on car-use are often based on estimates of the users’ own judgement of the effects; few studies make use of quasi-experimental methods. In this paper, the impact of car-sharing on car-ownership and car-use in Flanders, Belgium is estimated using survey data from both sharers and non-sharers. The impact on car-use is estimated using zero-inflated negative binomial regression, applied to matched samples of car-sharing users and non-users. The results show that the car-sharing may reduce car-use, but only if a significant number of users reduce their car-ownership. Policy intervention may therefore be required to ensure car-sharing leads to a reduction in car-use by, for example, discouraging car-ownership. Further research using quasi-experimental methods is required to illuminate whether the promise of car-sharing is reflected in reality.

Faculty research productivity under alternative appointment types: tenure vs non-tenure track

2017 ◽  
Vol 43 (12) ◽  
pp. 1348-1357
Author(s):  
Marcus T. Allen ◽  
Carol A. Sweeney
Keyword(s):  
Higher Education ◽  
Research Productivity ◽  
Negative Binomial ◽  
Cost Savings ◽  
Negative Binomial Regression ◽  
Tenure Track ◽  
Content Type ◽  
Higher Education System ◽  
The Usa ◽  
The Impact

Purpose The increasing use of non-tenure employment contracting as a cost savings and/or management flexibility increasing mechanism in colleges and universities raises concerns about the impact of this strategy on other aspects of the higher education system. The purpose of this paper is to document reduced research productivity at a university that uses rolling contracts in comparison to research productivity at another university in the same state university system in the USA that uses tenure track contracting. Design/methodology/approach Negative binomial regression analysis allows investigation of the primary variable of interest (appointment type) while controlling for other factors that may also affect research productivity. Findings The findings suggest that non-tenure track employment contracting may have other long-term implications for institutions of higher education that warrant consideration. Originality/value No prior study has investigated the topic of comparative research productivity in business schools using this methodology or data source.

The impact of corporate governance and ownership structure reforms on earnings quality in China

2015 ◽  
Vol 23 (2) ◽  
pp. 169-198 ◽  
Author(s):  
Xu_Dong Ji ◽  
Kamran Ahmed ◽  
Wei Lu
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Earnings Quality ◽  
Future Research ◽  
Governance Mechanisms ◽  
Content Type ◽  
Listed Firms ◽  
Ownership Structures ◽  
Corporate Governance Mechanisms ◽  
The Impact

Purpose – The purpose of this paper is to investigate the effect of corporate governance and ownership structures on earnings quality in China both prior and subsequent to two important corporate reforms: the code of corporate governance (CCG) in 2002 and the split share structure reform (SSR) in 2005. Design/methodology/approach – This study utilises informativeness of earnings (earnings response coefficient), conditional accounting conservatism and managerial discretionary accruals to assess earnings quality using 12,267 firm-year observations over 11 years from 2000 to 2010. Further, two dummy variables for measuring the changes of CCG and SSR are employed to estimate the effects of CCG and SSR reforms on earnings quality via OLS regression. Findings – This study finds that the promulgation of the CCG in 2002 has had a positive impact, but the SSR reform in 2005 has had little effect on listed firms’ earnings quality in China. These results hold good after controlling for a number of ownership, governance and other variables and estimating models with multiple measures of earnings’ quality. Research limitations/implications – Future research could focus on how western style corporate governance mechanisms have been constrained by the old management systems and governmental dominated ownership structures in Chinese listed firms. The conclusion is that simply coping Western corporate governance model is not suitable for every country. Practical implications – The results will assist Chinese regulators in improving reporting quality, ownership structure and governance mechanisms in China. The results will help international investors better understand quality of financial information in China. Originality/value – This is the first to our knowledge that addresses the effects of major governance and ownership reforms together on accounting earnings quality and, thus, makes a significant contribution on understanding the effect of regulatory reforms on improving earnings quality. In doing so, it also indirectly assesses the effectiveness of western-style corporate governance mechanisms introduced in China.

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